Homework Week 1
Problems 1-3, 1-9, 5-4, 5-8, and 5-9.
1-3) define the term strategic planning and list the steps required to complete one.
Strategic planning is a method for companies or organizations to outline their strategic goals and objectives for the long and short term.
List of steps to complete a strategic planning:
1. Mission Statement
2. Self-evaluation
3. Future Trends
4. Top-level, long term(five years) goals
5. Top-level, short term(annuals) goals
6. Strategic-objectives, short term(annual)
1–9) what is the primary difference between a research project and a product development project?
A research activity is a pursuit or study for which the end result is not a particular system or product. A development project is the design of a specific device for use as a product or internally by the company. Research activities have defined goals. The difference is that the goals are not the development of a specific product.
5–8 List the key decision factors that management will review to determine whether or not to proceed with a project.
Usually the company will require a project proposal that is similar to the deliverables. Above all, the project proposal should estimate how well the project will achieve the desired strategic objective. If the strategic objective is to gain market share in a new market, then how much market share is expected?
5–9) what are the types of risk that can occur on a new product development project?
The amount of risk entailed in the project. There are many types of risks associated with a project. There is always the risk that the project will not meet the basic operational requirements. Other risks include exceeding the investment projected, profit levels that are much less than expected, or competitive actions that will render the project ineffective. The amount of risk will be a key determinant in its approval.